The number of companies sliding into insolvency in Germany rose by 10.4 per cent in September compared to the year before, according to preliminary data.
This was announced by the Federal Statistical Office (Destatis) on October 13.
The final tally for July – which was published on the same date – shows that insolvency rose by 13.4 per cent year-on-year in the month.
The preliminary data is based on insolvency announcements from German courts that are later complemented by official statistics to arrive at the final number.
The amount owed by bankrupt companies has also risen. Those that became insolvent in July owed a total of €3.7 billion to their creditors, according to Destatis, an increase of more than 15 per cent compared to July 2024.
The sectors most affected were transportation and storage businesses (12.7 insolvencies per 10,000 companies), followed by restaurateurs (9.9 insolvencies). Altogether, the bankruptcy rate in Germany was 6.3 insolvencies per 10,000 companies.
The Association of German Chambers of Industry and Commerce (DIHK), a lobbying organisation, called the number “shocking”, adding that it represented the highest value for corporate bankruptcies in twelve years.
“These are no good news for the German economy,” said DIHK chief economist Volker Treier, attributing the rise in insolvencies to a mix of general economic malaise in Germany, exacerbated by declining exports, especially to the US and continuing deindustrialisation.
That is why better location factors are needed for Germany, said Treier, adding: “We urgently need to move away from high energy and personnel costs and the high tax and bureaucratic burdens compared to other countries.”
The business association expects that altogether 22,000 German companies will have to file for bankruptcy in 2025, equivalent to more than 60 insolvencies per day.
